- Saudi Arabia's state-owned oil giant Aramco increased its dividend despite a 24.7% decline in net profit to $121.3 billion in 2023, attributed to lower oil prices and volumes. This highlights the state's ongoing dependence on oil revenue as it endeavors to diversify its economy. Despite the profit dip from $161.1 billion in 2022, Aramco reported its second-highest profit on record, with total dividends for the year amounting to $97.8 billion, marking a 30% increase. Oil revenues remained a significant contributor, constituting 62% of total state revenues last year.
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Chief Executive Amin Nasser emphasized the company's resilience, stating, "Our balance sheet remains strong, even after our significant growth program and dividend payouts." He anticipates global oil demand to reach 104 million barrels a day in 2024, up from an average of 102.4 million barrels in 2023. Aramco's ambitious economic agenda, aligned with Vision 2030, is steered by the sovereign Public Investment Fund, which now owns 16% of Aramco following a recent transfer by the government. Looking ahead, Aramco declared a base dividend of $20.3 billion for the fourth quarter and anticipates performance-linked dividends totaling $43.1 billion this year. The company's capital investments rose to $49.7 billion in 2023, with forecasts ranging from $48 billion to $58 billion for the current year.
Why it matters
Despite fluctuations, Aramco remains steadfast in its strategic investment approach, with a focus on upstream initiatives, including gas investments, to optimize oil export and associated liquid production.
